Ethanol Prices at Pumps: Despite Increases, Ethanol Regains Competitiveness in São Paulo and Mato Grosso

During the period of March 15 to 21, 2024, fuel prices in Brazil generally rose, yet ethanol has regained competitiveness in specific regions. Data from the National Agency of Petroleum, Natural Gas, and Biofuels (ANP) indicates that ethanol prices increased in 23 states, while gasoline prices climbed in 26 states. Specifically, the retail price of ethanol reached R$4.70 per liter, marking a 1.3% increase from the previous R$4.64/L. Concurrently, gasoline prices rose to R$6.65/L, a weekly increase of 2.9%, representing its third consecutive rise. Despite these increases for both fuels, the ethanol-to-gasoline price ratio decreased from 71.8% in the prior week to 70.7%. A ratio below 70% is generally considered the threshold where ethanol becomes more economically advantageous for consumers. ANP's survey, which covered 377 Brazilian cities, considers not only pump prices but also sales volumes, giving larger consumer markets greater representation in the overall results. Based on state averages, ethanol proved to be economically advantageous for consumers in São Paulo, Mato Grosso, and Mato Grosso do Sul. For instance, from March 16 to 20, ethanol producers in São Paulo sold hydrous ethanol at R$2.9609/L.